Bad Moon Rising—Any Credence in a Near-Term Methanol Revival?

Times are tough in the methanol market. Posted and spot prices for methanol have continued falling (to levels not seen since 2010). New methanol capacity, planned during the good ol’ days, has been coming online, further depressing prices. And while more methanol-to-olefins (MTO) plants are starting up in China—the product’s biggest market—they are running at far less than full speed. But one bright spot for U.S. methanol producers is dirt-cheap natural gas, providing U.S. plants a competitive advantage versus those in the rest of the world. Today, we examine recent developments in the methanol market and consider what may be coming next.

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Founded in 2003, the Prometheus Institute is a non-partisan US-based non-profit delivering insight and action dedicated to achieve sustainable and universal economic, industrial, environmental, and human development...